Will President Trump seek to repeal the Saving on a Valuable Education (SAVE) repayment plan? Right now, it seems more likely than not that he would, and his administration would have multiple paths to get there. Read more: www.studentloanplanner.com/trump-repeal-save-plan-student-loans/
If/when repealed, it will be "interesting" to see how that is implemented - what will the millions of borrowers currently on the SAVE plan be switched to by default? Most likely option would be that everyone will be kicked to the Standard Repayment Plan and be given the option to apply for an IDR plan. But how will servicers cope with millions of IDR applications all at once? Mohela has been proven to be absolute garbage at everything they touch, so there is not much hope they can handle that process smoothly. The second option, which is less likely administratively, but more logically sound is that everyone in SAVE will be reverted to their previous/most-recent plan (including being grandfathered into PAYE). Third option, as discussed in the video - if PAYE, SAVE, and ICR all get killed - then we are back to the most likely option discussed above, but now with even more likelihood that servicers will not be able cope with the number of applications for people wanting to switch to the legally-safe (relatively speaking) IBR plan. Finally, and it needs to be said: I put more thought and consideration into writing this short post than Trump ever will in making the decision about killing SAVE; he will just issue a bold and sweeping proclamation that he is putting an end to SAVE, and consequences be damned.
I'm picturing these scenarios and wondering if we're going to be thrown into another administrative forbearance down the road while they try to get everyone sorted 🫠
The economy could very well tank because people can't afford these loans. Honestly, I regret going to college and taking out those loans. But America will also regret leaving past and present college students trapped by unescapable debt with no way out. One of the main ideas of Americans was a way out when you hit rock bottom, second and third chances. But many people online seem to have forgotten that.
Well stated. The sad part is that all of this is happening because somebody wanted to kick hard working people out of the country and save a few cents on a carton of eggs. But the few cents saved on the eggs will not offset the additional money spent on higher student loan payments and the loss of healthcare coverage. Some didn't think this out before entering the voting both.
At this point, we want the SAVE plan repelaed because that will make the current 8th Circuit court case moot, thus no need for them to rule on whether PAYE/REPAYE should be thrown out.
You are not allowed to switch to the IBR payment plan right now. I’ve called the Department Of Education and my servicer and both say that even though IBR is not under litigation, they’re not processing any applications right now for IBR or anything. So telling people to switch to IBR is not gonna be helpful. I’m literally stuck in the SAVE forbearance and can’t move
What about people that file single and make less than 75k? I hear alot about couples and those making over 100,000 but nothing for single filer with 75 or less.
Thank you for all this info! The system is all very confusing and convoluted and will likely become even more so, but I know I need to educate myself before 2025
Right now on the SAVE plan, I have $0 payment unitl 11/2025. I plan on paying off 24k by then due to what could happened 2025. I would not want that debt hanging over my head with how the nation is headed now.
Mohela isn’t processing requests to switch to IBR and they informed me they don’t know when they will start processing IDR requests again. I was supposed to have two years left towards PSLF forgiveness but now it looks like it won’t be happening until 2027 given that I’m no longer earning service credit and the buyback option may possibly go away with the new administration. It sucks being stuck in limbo knowing that every month is a possibility that my forgiveness is getting pushed back another month as well. Definitely would love to hear if anybody has been able to switch back to IBR with Mohela and how they did that.
I was supposed to reach my 120th payment under PSLF this past October 2024. I’m so upset. I called Mohela and they informed me of the same thing. No processing of IBR applications right now.
I have EdFinancial as my servicer. They aren’t processing IBR applications either. All the advice I get says to move to IBR, but that’s literally not possible right now. I don’t know what’s going on.
Try the application on the student aid website. I just did and it was easy. You may need to upload a document. I just have to wait until mohela responds.
Thanks for this video. I’m pissed. Mohela told me long ago when I applied for the plan before SAVE it was another forgiveness plan- that it was an agreement and as long as I recertified every year I would be fine. They basically told me it could not be “undone” I think this whole thing is a mess. These forgiveness should never have been promised or offered
Really appreciate you ALL. I completed my application for IBR today. My wife and I filed separately last year so I’m good there. Biggest issue will be the tax bomb in 13 years when my loan expires. However, with lower payments I’m able to invest, and my return on investment should beat out any amount that I owe when the time comes. Your advice has been so helpful.
How about if I’ve always been on PAYE plan? I didn’t think SAVE was going to go the long haul. Also I am on PSLF. Any updates or things to do at this point?
We were put into save automatically which has led us to be in this frozen limbo. We are fine not being on save and would happily be on any other plan available but we're not allowed to switch and are being forced to sit here doing nothing and making no progress. We have no idea what to do.
Are you sure you can’t switch? I talked to both the department of Ed And my loan services (Nelnet) yesterday. Both of them confirmed my eligibility for IBR. I completed my application 11/7. Things appear to be working out nicely.
@CountDewkeww I would love to hear if it goes through! Maybe something changed that we're unaware of, but so far, we have been told they are not accepting applications. I have heard many others who are having the same experience.
@CountDewkeww this is the first I'm hearing of it. I'll have to look into it. We looked into switching back in September and didn't try again since so many, including coworkers, have all been talking about it not working for them either.
It will take an act of Congress to remove PSLF and IBR. Wouldn’t stop him from making things more difficult but the mess that would create would not help the GOP in Congress and he would use up any political capital he has right now.
It would be handled by another department. Federal law requires whatever the dept of education does to be done by a federal agency regardless of elimination.
It’s just a default thing till they process and realize what will happen to the SAVE plan and other IDR plans come January. Even if you don’t benefit from any and are just on standard payment my opinion is they can’t handle processing millions who are on SAVE and those who don’t use it so they rather just keep everyone on hold in forbearance till the govt figures out what to do and then they will proceed
Say SAVE does not get struck down before Trump takes office. Will you then be able to apply for IBR with the new administration? and all the changes they want to make to Dept of Ed.
I am currently in a consolidated standard repayment plan and believe I have 30 months of credit but am NOT in an IDR (because I didn’t know I’d have to be for forgiveness). I don’t THINK I qualify for IBR (although I could have if I’d known), but I should qualify for ICR. Should I try to apply for this ASAP?
Hope you see this and might be able to answer. I was on Old IBR from 2011 until switching to SAVE in 2024. So that was about 13 years of progress toward forgiveness. Do you know what would happen if I switched back to Old IBR? Would I still get credit for those 13 years?? Thank you SO much for the information 😊
@meaganmcguire5857 thank you so much for taking the time to respond! I hope you're right, because it seems like there's not a lot of real hope for the SAVE plan 😔
Once SAVE gets struck down by the Trump administration, will borrowers be able to apply for another IDR plan, such as PAYE so that once payments resume, these payments will be based on income and not the standard repayment plans?
I’m thinking I need make more payments under 0% rate while still on save I had stopped thought balance over 41k to bring down balance interest free since no longer eligible for pslf
I’m 48 and committed to ensuring my child has a bright future. Over the years, I’ve prioritized saving for their college education by consistently contributing to a 529 savings plan. By starting early and leveraging the power of compound interest, I’ve managed to accumulate a substantial amount that will cover tuition and other expenses. This proactive approach not only gives me peace of mind but also instills in my child the importance of education and financial responsibility. I truly believe that investing in their future is one of the greatest gifts I can offer, setting them up for success in their academic journey.
I’ve always felt that luck plays a significant role in investing. Without it, achieving true success can be challenging, regardless of the resources at your disposal.
While I agree that luck can influence outcomes, especially in the short term, I’ve learned that consistent results stem from more than mere chance. When I had only saved $200k, I realized I couldn’t rely on luck or time alone. I needed a more deliberate approach-one that moved beyond just hoping for the best. That’s when I discovered Kathie Daisy Bosco, a fund manager whose balanced strategy of risk and growth inspired confidence in my investment decisions.
I did a quick search on her name and found her page, and I’m eager to learn more about her methods. I appreciate you pointing her out; it feels like a promising opportunity to enhance my financial strategy.
what about people that did have have parents to save up for things. I will pay back triple in 25 years post grad school due to interest rates. save plan was a god send for paying back what was owned and he'll take it away just to be spiteful.
I just quintupled consolidated my student loans I was wondering if I do it one more time and I’m enrolled in the save plan w psfl do to being on social security do I still need to pay. Drill baby drill.
I think SAVE and all the other plans not authorized by congressional law should be repealed. IBR, PLSF and 25 year forgiveness with no interest subsidy and tax liability for forgiven debt should be in place.
And then watch our economy collapse as millions are no longer able to afford to buy anything other than what's needed for bare survival. THAT would be quite the legacy for Trump, wouldn't it.
Will President Trump seek to repeal the Saving on a Valuable Education (SAVE) repayment plan? Right now, it seems more likely than not that he would, and his administration would have multiple paths to get there. Read more: www.studentloanplanner.com/trump-repeal-save-plan-student-loans/
If/when repealed, it will be "interesting" to see how that is implemented - what will the millions of borrowers currently on the SAVE plan be switched to by default? Most likely option would be that everyone will be kicked to the Standard Repayment Plan and be given the option to apply for an IDR plan. But how will servicers cope with millions of IDR applications all at once? Mohela has been proven to be absolute garbage at everything they touch, so there is not much hope they can handle that process smoothly.
The second option, which is less likely administratively, but more logically sound is that everyone in SAVE will be reverted to their previous/most-recent plan (including being grandfathered into PAYE).
Third option, as discussed in the video - if PAYE, SAVE, and ICR all get killed - then we are back to the most likely option discussed above, but now with even more likelihood that servicers will not be able cope with the number of applications for people wanting to switch to the legally-safe (relatively speaking) IBR plan.
Finally, and it needs to be said: I put more thought and consideration into writing this short post than Trump ever will in making the decision about killing SAVE; he will just issue a bold and sweeping proclamation that he is putting an end to SAVE, and consequences be damned.
I'm picturing these scenarios and wondering if we're going to be thrown into another administrative forbearance down the road while they try to get everyone sorted 🫠
The economy could very well tank because people can't afford these loans. Honestly, I regret going to college and taking out those loans. But America will also regret leaving past and present college students trapped by unescapable debt with no way out. One of the main ideas of Americans was a way out when you hit rock bottom, second and third chances. But many people online seem to have forgotten that.
Well stated. The sad part is that all of this is happening because somebody wanted to kick hard working people out of the country and save a few cents on a carton of eggs. But the few cents saved on the eggs will not offset the additional money spent on higher student loan payments and the loss of healthcare coverage. Some didn't think this out before entering the voting both.
either way we are screwed
At this point, we want the SAVE plan repelaed because that will make the current 8th Circuit court case moot, thus no need for them to rule on whether PAYE/REPAYE should be thrown out.
This is good strategy. SCOTUS huge on no/moot standing.
You are not allowed to switch to the IBR payment plan right now. I’ve called the Department Of Education and my servicer and both say that even though IBR is not under litigation, they’re not processing any applications right now for IBR or anything. So telling people to switch to IBR is not gonna be helpful. I’m literally stuck in the SAVE forbearance and can’t move
Saving 50 cents on gas or a little on groceries will not even come close to the extra money they want on these loans.
What about people that file single and make less than 75k? I hear alot about couples and those making over 100,000 but nothing for single filer with 75 or less.
Thank you for all this info! The system is all very confusing and convoluted and will likely become even more so, but I know I need to educate myself before 2025
Right now on the SAVE plan, I have $0 payment unitl 11/2025. I plan on paying off 24k by then due to what could happened 2025. I would not want that debt hanging over my head with how the nation is headed now.
Mohela isn’t processing requests to switch to IBR and they informed me they don’t know when they will start processing IDR requests again. I was supposed to have two years left towards PSLF forgiveness but now it looks like it won’t be happening until 2027 given that I’m no longer earning service credit and the buyback option may possibly go away with the new administration.
It sucks being stuck in limbo knowing that every month is a possibility that my forgiveness is getting pushed back another month as well. Definitely would love to hear if anybody has been able to switch back to IBR with Mohela and how they did that.
Exactly!!! I am so upset. If I think too long about it, it is depressing.
I was supposed to reach my 120th payment under PSLF this past October 2024. I’m so upset. I called Mohela and they informed me of the same thing. No processing of IBR applications right now.
I have EdFinancial as my servicer. They aren’t processing IBR applications either. All the advice I get says to move to IBR, but that’s literally not possible right now. I don’t know what’s going on.
Try the application on the student aid website. I just did and it was easy. You may need to upload a document. I just have to wait until mohela responds.
Applying online is a proactive measure studentaid.gov/idr/
Can’t control processing times but can control doing something.
Thank you for keeping us informed
Do you have a website to contact a consultant?
Thank you, Megan! 💌
I just applied for SAVE plan today…what does that mean for me?
they're not processing the applications so you probably won't be enrolled
@ will i be in a forbearance period or should i just revoke it and apply for the IBR?
@@nikko7565 prob just apply for IBR
Thanks for this video.
I’m pissed. Mohela told me long ago when I applied for the plan before SAVE it was another forgiveness plan- that it was an agreement and as long as I recertified every year I would be fine. They basically told me it could not be “undone” I think this whole thing is a mess. These forgiveness should never have been promised or offered
Right!!! I am so disgusted right now
Yep
They scammed us
Same..
mohela, navient, sallie mae they all suck ass
This was incredibly helpful! Thank you!!!!
He most certainty will. But we cannot give up. There is always a way out.
Just finished the parent plus double consolidation loophole. All that is left would be to apply for IDR. What should I be doing now?
apply for IBR
Really appreciate you ALL. I completed my application for IBR today. My wife and I filed separately last year so I’m good there. Biggest issue will be the tax bomb in 13 years when my loan expires. However, with lower payments I’m able to invest, and my return on investment should beat out any amount that I owe when the time comes. Your advice has been so helpful.
Mohela is very difficult to deal with and they don’t explain things.
How about if I’ve always been on PAYE plan? I didn’t think SAVE was going to go the long haul. Also I am on PSLF. Any updates or things to do at this point?
See 9:48
This is a nightmare. I’m going to end up in bankruptcy because I’m not going to be able to pay $500 a month.
So I was on save, can no longer get into paye or ice bc they aren’t accepting new applications, and make too much for ibr. Wtf guys? What should I do?
Applying for IBR online is a proactive measure studentaid.gov/idr/
We were put into save automatically which has led us to be in this frozen limbo. We are fine not being on save and would happily be on any other plan available but we're not allowed to switch and are being forced to sit here doing nothing and making no progress. We have no idea what to do.
Are you sure you can’t switch? I talked to both the department of Ed And my loan services (Nelnet) yesterday. Both of them confirmed my eligibility for IBR. I completed my application 11/7. Things appear to be working out nicely.
@CountDewkeww I would love to hear if it goes through! Maybe something changed that we're unaware of, but so far, we have been told they are not accepting applications. I have heard many others who are having the same experience.
@@nspencer257 I’ll keep you informed.
@@nspencer257 also I’m reading that the Department of Ed. Reopened IDR applications in October.
Not sure how old your information is.
@CountDewkeww this is the first I'm hearing of it. I'll have to look into it. We looked into switching back in September and didn't try again since so many, including coworkers, have all been talking about it not working for them either.
It will take an act of Congress to remove PSLF and IBR. Wouldn’t stop him from making things more difficult but the mess that would create would not help the GOP in Congress and he would use up any political capital he has right now.
Wrong
Ok. I’m glad you are basing that on emotion
Trumps administration didnt honor PSLF last time they had power.
They are going to screw you if they can .... And they can
Unfortunately, the GOP does have the votes to make repeal happen. Getting rid of the Department of Education would be a harbinger of things to come.
What if the department of edu. Gets shut down, what will happen with the student loans?
It would be handled by another department. Federal law requires whatever the dept of education does to be done by a federal agency regardless of elimination.
@@SB-hy9iq And you know that handover will be smooth. NOT. We are looking at a potentially huge mess.
@@SvilenTrifonovabsolutely will be a pain in the butt
Any info on why mohela keeps putting part of my loans in forbearance even tho I’m on the standard plan
It’s just a default thing till they process and realize what will happen to the SAVE plan and other IDR plans come January. Even if you don’t benefit from any and are just on standard payment my opinion is they can’t handle processing millions who are on SAVE and those who don’t use it so they rather just keep everyone on hold in forbearance till the govt figures out what to do and then they will proceed
Say SAVE does not get struck down before Trump takes office. Will you then be able to apply for IBR with the new administration? and all the changes they want to make to Dept of Ed.
yes you'd be able to apply
Save is on the chopping block like a turkey up for Thanksgiving 😮
I am currently in a consolidated standard repayment plan and believe I have 30 months of credit but am NOT in an IDR (because I didn’t know I’d have to be for forgiveness). I don’t THINK I qualify for IBR (although I could have if I’d known), but I should qualify for ICR. Should I try to apply for this ASAP?
yes
Hope you see this and might be able to answer. I was on Old IBR from 2011 until switching to SAVE in 2024. So that was about 13 years of progress toward forgiveness. Do you know what would happen if I switched back to Old IBR? Would I still get credit for those 13 years?? Thank you SO much for the information 😊
yes, you wont loose the credit!
@meaganmcguire5857 thank you so much for taking the time to respond! I hope you're right, because it seems like there's not a lot of real hope for the SAVE plan 😔
Once SAVE gets struck down by the Trump administration, will borrowers be able to apply for another IDR plan, such as PAYE so that once payments resume, these payments will be based on income and not the standard repayment plans?
"We're going to finish what we started"- Famous Last words of Joe Biden
I’m thinking I need make more payments under 0% rate while still on save I had stopped thought balance over 41k to bring down balance interest free since no longer eligible for pslf
I’m 48 and committed to ensuring my child has a bright future. Over the years, I’ve prioritized saving for their college education by consistently contributing to a 529 savings plan. By starting early and leveraging the power of compound interest, I’ve managed to accumulate a substantial amount that will cover tuition and other expenses. This proactive approach not only gives me peace of mind but also instills in my child the importance of education and financial responsibility. I truly believe that investing in their future is one of the greatest gifts I can offer, setting them up for success in their academic journey.
I’ve always felt that luck plays a significant role in investing. Without it, achieving true success can be challenging, regardless of the resources at your disposal.
While I agree that luck can influence outcomes, especially in the short term, I’ve learned that consistent results stem from more than mere chance. When I had only saved $200k, I realized I couldn’t rely on luck or time alone. I needed a more deliberate approach-one that moved beyond just hoping for the best. That’s when I discovered Kathie Daisy Bosco, a fund manager whose balanced strategy of risk and growth inspired confidence in my investment decisions.
I did a quick search on her name and found her page, and I’m eager to learn more about her methods. I appreciate you pointing her out; it feels like a promising opportunity to enhance my financial strategy.
I met Kathie Daisy for the first time last year at a women's conference here in Pennsylvania
what about people that did have have parents to save up for things. I will pay back triple in 25 years post grad school due to interest rates. save plan was a god send for paying back what was owned and he'll take it away just to be spiteful.
I think he will repeal any aid that benefits his billionaire friends 😥
His biggest voting block is uneducated whites so clearly he doesn’t want ppl getting an education
You're doing God's work. Thank you
I just quintupled consolidated my student loans I was wondering if I do it one more time and I’m enrolled in the save plan w psfl do to being on social security do I still need to pay. Drill baby drill.
Mohela is a HOT MESS. I am beyond mad pist about with a number of things regarding student loan forgiveness.
Can you get a divorce so your spouses income wont count anymore?
file taxes separately instead
I think SAVE and all the other plans not authorized by congressional law should be repealed. IBR, PLSF and 25 year forgiveness with no interest subsidy and tax liability for forgiven debt should be in place.
And then watch our economy collapse as millions are no longer able to afford to buy anything other than what's needed for bare survival. THAT would be quite the legacy for Trump, wouldn't it.